Qimonda Prices IPO

Staff Reporter -- 7/21/2006

Infineon Technology's wholly owned subsidiary, Qimonda AG, has filed the registration statement with the Securities and Exchange Commission (SEC) for its planned IPO with a price range between $16 to $18 per share.

Sixty-three million shares will be offered for sale, a total offer size of between $1 billion and $1.1 billion. About 33 percent of the 63 million shares, 21 million, will be offered for sale by Infineon, with the remainder of the shares coming from a capital increase by Qimonda.

Qimonda, which will consist of Infineon’s memory operations, expects to receive proceeds of between $672 million and $756 million from the offering, which it intends to use to finance investments in its manufacturing facilities and research and development, the company said today in a statement.

Assuming completion of the offering and a full exercise of an over-allotment option of up to 9.45 million additional shares from Infineon, Qimonda's free float will be approximately 21 percent.

The Qimonda shares will be offered to institutional and retail investors in the United States and to institutional investors outside the U.S.. The ticker symbol for Qimonda on the New York Stock Exchange will be "QI". The company did not disclose details of when it expects the IPO, although industry rumors peg the IPO for mid-August.

Credit Suisse, Citigroup and JPMorgan will act as joint book-running managers for the offering. Co-lead managers of the transaction are ABN Amro Rothschild, Deutsche Bank Securities and Hypovereinsbank.

Infineon officially spun-off its memory division into wholly owned subsidiary Qimonda earlier this year, with operations starting at its headquarters in Munich, Germany, on May 1.

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